Legal Framework: Intel Corp's Australian Trade and Enterprise

This report examines the legal framework impacting Intel Corporation's operations in Australia. It begins with an overview of Intel, including its global headquarters and employee count. The report then delves into the specific Australian laws affecting Intel, such as the Corporations Act 2001 and the Competition and Consumer Act 2010, detailing their implications for the company. Furthermore, it explores Intel's compliance with data privacy laws like the Privacy Act 1988, and its financial obligations, including corporate tax and workplace safety regulations. The report also analyzes the influence of treaties and agreements, particularly the AUSFTA, currency interest rate swaps, and channel trademark license agreements, on Intel's Australian business activities. It also mentions the significance of human rights declarations and how they affect the company's operations and compliance in Australia. The report provides a comprehensive understanding of the legal and regulatory environment within which Intel operates in Australia.

Intel Corp
Legal Aspects of International Trade and Enterprise
Student’s Name
12/20/2019

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Executive Summary
The report presented hereby is developed to understand the legal framework of a
multinational company where Intel Corp has selected as the organization of the choice.
In the first part of the report, an overview of the company, such as several employees,
location of headquarters has been discussed. Further local laws of Australia that
influence working of Intel in this nation have been discussed that include legislations of
various sectors and lastly, some government treaties and personal agreements of the
company that directly or indirectly influence products and services of the company have
mentioned. The information is divided into respective parts and given under appropriate
headings.

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Contents
Executive Summary...........................................................................................................1
Description of the company...............................................................................................2
Legal framework affecting Australian operations..............................................................2
Treaties, conventions, and agreements............................................................................4
References.........................................................................................................................6

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Description of the company
As mentioned above, the company selected for this assignment is Intel Corporations,
which is an American company, having its global headquarter at California state of the
United States (USA) (Nelson, 2010). As per the latest annual report available of the
company, the company has nearly 107400 employees across the globe (intel, 2018).
The company belongs to the technology industry where it provides a series of products
and services. The products of the company include processors, system and devices,
chipsets, server products, wireless and so on. Further, the company also provides
solutions related to industries, businesses, sports, and other areas to partners, FPGA
developers, educators, software/hardware developers, and others. The company is
active in its Australia through the company named "Intel Australia Pty. Ltd"
(intel.com.au, 2019).
Legal framework affecting Australian operations
Laws are an important aspect for each business that one needs to comply with to
operate according to a regulatory system and to satisfy the requirements of various
stakeholders, especially of government. Every business organizations have to follow
some laws of the related nation but in the case of multinational companies, this
structure becomes complex in comparison to other companies as the same has to
follow and comply with the rules and laws of more than one nation. In other words to
states that such companies have to follow the law of the nation in which the same is
registered as well as of other nations where the same is operating. Since Intel
Corporation has an active business in Australia, these operations are likely to being
affected by different legislations and laws that are mentioned further.
As discussed above, Intel Corp has registered an Australian company hence the
primary legislation applicable to the company is Corporations Act 2001 (Cth). This is
Australian federal law that carries corporate law of this nation and applies to every
company that is registered with the Australian Securities and Investments Commission
(Chapple, et al, 2019). This is important legislation for many reasons as it contains
provisions related to many topics such as duties of different parties, rights of creditors,
shareholders, and the manner to raise money, compliances, insolvent trading,
liquidations, and others. Intel has to carry all the business activities in Australia as per
this act and to make timely disclosures to authorities accordingly. In case of any breach
of the provisions of this act, the company, as well as its Australian administration, can
find liable for penalties and other liabilities. In this way, the act affects the company.
Another important act is the Competition and Consumer Act 2010 where provisions
related to consumer protection and market competition can be found. Intel is a
technology product manufacturer and supplier and therefore is required to consider the
interest of customers with respect to the default of unsatisfactory products. The
consumer law of Australia that a consumer who does not receive the goods as per
expectations in terms of safety or description or otherwise would have protection under
this law (herbertsmithfreehills.com, 2019). The company can be held liable for the
default products produced and supplied in Australia. Similarly, the competition act states

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the provisions related to the prohibition of unhealthy competition in the market that is
also applicable to Australian affairs of multi-national companies. Both of these laws i.e.
competition law and consumer law can be found under a single piece of legislation
namely Competition and Consumer Act 2010.
The company has developed its privacy policy and notice that it describes how the
company uses personal information of the shareholders and other stakeholders. The
policy also informed the nature of the information that this company collects. Further,
how the company uses this information about how the same share it also forms an
important part of this policy. The provisions related to access, correction or deletion of
collected personal information can also be seen there. While working in Australia, Intel
has to ensure that the provisions of its data privacy policy are being complied with the
"Privacy Act 1988" which is again federal level legislation in Australia. The act has set
out an idol way to deal with the information of an individual collected by the
organizations, in addition to providing a manner to collect handle and share the same
with a third party (Walters, Trakman, and Zeller, 2019). This act affects regular dealings
of the company as any breach of provision can lead to serious consequences to the
same hence while making bills and providing services data should be collected
accordingly.
Financials are an important aspect for each business in which many of the stakeholders
have their interests. For instance, shareholders expect to return out of the profit where
the government expects tax. All the multinational companies are working in Australia
are required to pay corporate tax by the same percent as a domestic company which is
30%. Intel Corporation needs to pay on its Australian earning according to the said rate.
Further employees are important assets of every organization and therefore their
interest remains a primary concern for every entity. Intel Corp needs to take care of the
health and safety of employees. Australia has state legislation related to this topic,
which provides provisions related to workplace safety measures and other aspects.
These legislations seem to be another important consideration for Intel. For instance,
Work Health and Safety Act 2011 No 10 (NSW) is an act of NSW state that applies to
the businesses registered in this state. Since Intel Australia Pty Ltd is registered in this
state, hence the employees thereof can demand protection under this act. In this way,
the company has to comply with the provisions of this act by providing safety measures
and other health-related protection to the employees or else they can have to pay
penalties.
In addition to the above-mentioned acts, some other regulations and rules are also
there which seems important to mention as they affect operations of Intel in Australia.
These include intellectual property law, environmental protection law, and legislation
related to human rights. Whenever the company comes up with a new product, it
becomes necessary for the same to protect it under intellectual property law such as
Trade Marks Act 1995 and also needs to ensure that it is not infringing such rights of
others. Similarly, the Australian Competition & Consumer Commission provides an
advertising and selling guide that applies to all businesses registered in this country.
Intel also has to follow these guidelines while marketing the products in Australia.
Further, if any of its products requires taking the prior license of any government
authority, then Intel cannot launch its products without having such a license.

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Treaties, conventions, and agreements
Legal framework affects every business but in addition to the same, many treaties,
conventions, agreements are also there which influence the working of originations.
Unlike the laws, such agreements, and treaties do not apply to every business in a
standard way and vary accordingly. The government of respective nations enters into
some of these treaties and in some of the agreements company, itself entered into that
further affects its working. In the following section, some of the treaties and agreements
are discussed.
The very first agreement, which is significant to study, is AUSFTA, which represents the
fair trade agreement developed between Australia and the USA. As the name implies,
this agreement contains provisions related to trade in the international market where
one party is the USA and another one in Australia. The agreement came into force with
effect from 01st January 2005 (Greenleaf and Lindsay, 2018). Although the main
objective of this agreement is to make the entrance of Australian products easy into the
US market the same also work in another manner. The agreement decreases the level
of standards which organization has to follow while spreading their functions to the
foreign market. This agreement developed a friendly relationship between these two
countries and it makes Australia a suitable nation to work (Paul, 2012). Being a US-
based company; Intel is now able to work in Australia in a great manner due to this FTA
but in its dealings has to comply with the provisions of this agreement. The agreement
also contains some restriction and therefore Intel cannot work in Australia going outside
of the boundaries of those restrictions. As per the information presented on the official
website of the company, the same support such fair trade agreements which further
confirms that affairs of the company in different countries are likely to being affected by
the same (intel.com, 2019a). In this manner, the agreement regulates supply and other
aspects of products and business of this USA Company in Australia.
Further as mentioned above, Intel is originally a US-based company and having its
operations in different nations, which have different currency, hence to manage the risk
associated with foreign currency company has to make some agreements. To discuss
this risk in relation to Australia this is to state that to manage the risk of Australian
dollar-denominated notes; the company has entered into currency interest rate swaps.
This arrangement converts these notes into US dollar-denominated notes. This rate
swap agreement affects the working of the company as sometimes prices of Australian
products need to be decided as per the currency of the US, which also affect the sale of
the company's products in Australian markets.
Channel Trademark License Agreement is another agreement, which is related to the
trademark. This agreement is relevant in domestic as well as international markets. In
this manner, it also affects the company in Australia. To understand this agreement this
is to state that the same prevent unauthorized use of the company's logo and provide
protection of unauthorized use. Any person or organization cannot use the licensed logo
of Intel without seeking permission from Intel and if someone does so then it is likely to
be regarded as an infringement of Intel's executive right. In addition to granting authority
to the third party to use Intel's licensed logo, the company also outlined the manner in
which the same can be used (intel.com, 2019b). The agreement affects working in
Australia, as the same needs to pay attention to the parties who are using subjective

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logos and has to keep records of them. It increases additional compliance and record-
keeping for the company.
Human rights are important concerns for each business. A business has to consider
and protect the human rights of many of its stakeholders. However, businesses need to
identify the human rights associated with an individual. Sometimes, a business has to
comply with these rights in a mandatory manner. For instance, Australia is a signatory
of the international human rights treaty named The Universal Declaration of Human
Rights and due to the same, it ensures that all the Australian businesses are protecting
the rights mentioned under this declaration. Intel corp also has to do follow the
instructions and rights outlines in this declaration while working in Australia. In this
manner, the declaration affects working and compliance of the company as anything is
done in breach of these rights can attract penalties to this corporation.
In addition to the above, other treaties and agreements developed by the Australian
government can also affect the business and working of this company in Australia and
the above mentions are only a few major ones out of many.

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References
Chapple, E., Wong, A., Baumfeild, R., Copp, R., Cunningham, R., Kamalnath, A.,
Watson, K., and Harpur, P. (2019) Company Law: An Interactive Approach.
Queensland: John Wiley & Sons.
Competition and Consumer Act 2010
Corporations Act 2001 (Cth)
Greenleaf, G. and Lindsay, D. (2018) Public Rights: Copyright's Public Domains. UK:
Cambridge University Press
Health and Safety Act 2011 No 10 (NSW)
herbertsmithfreehills.com. (2019) Consumer Protection and Product Liability.
https://www.herbertsmithfreehills.com/doing-business-in-australia/content/consumer-
protection-and-product-liability [Accessed on 20/12/2019]
intel. (2018) 2018 Annual Report. [online] Available
from:https://s21.q4cdn.com/600692695/files/doc_financials/2018/Annual/Intel-2018-
Annual-Report_INTC.pdf [Accessed on 20/12/2019]
intel.com. (2019a) Global Trade Policy. [online] Available
from:https://www.intel.com/content/www/us/en/policy/policy-trade.html [Accessed on
20/12/2019]
intel.com. (2019b) Channel Trademark License Agreement (CTLA). [online] Available
from:https://www.intel.com/content/www/us/en/technology-provider/channel-trademark-
license-agreement.html [Accessed on 20/12/2019]
intel.com.au. (2019) Company overview. [online] Available
from:https://www.intel.com.au/content/www/au/en/company-overview/company-
overview.html [Accessed on 20/12/2019]
Nelson, R.,C. (2010) Harnessing Globalization: The Promotion of Nontraditional
Foreign Direct Investment in Latin America. USA: Penn State Press.
Paul, E. (2012) Neoliberal Australia and US Imperialism in East Asia. UK: Palgrave
Macmillan.
Privacy Act 1988
Trade Marks Act 1995
Walters, R., Trakman, L., and Zeller, B. (2019) Data Protection Law: A Comparative
Analysis of Asia-Pacific and European Approaches. Australia: Springer Nature.